Proposal to list a range of orthopaedic implants and associated products supplied by Lima Orthopaedics New Zealand Limited

Hospital devices

Consultation Closed

PHARMAC is seeking feedback on a proposal to list a range of orthopaedic implants and associated products supplied by Lima Orthopaedics New Zealand Limited (“Lima”) in Part III of Section H of the Pharmaceutical Schedule from 1 November 2017.

In summary, this proposal would result in:

  • Around 1200 products which are already supplied to DHB Hospitals being supplied by Lima under a proposed national agreement (“Agreement”) that all DHBs may purchase under, subject to consultation and approval.
  • This Agreement would not be a sole supply agreement, and DHBs may continue to purchase other suppliers’ brands of orthopaedic implants and associated products.
  • Lima providing educational services that will be tailored to suit the needs of individual DHB Hospitals in formats and at times as required by DHB Hospitals.
  • A total national increase to costs of around $14,000 per annum is expected at current usage levels with the opportunity for DHBs to access lower pricing based on a commitment level. Pricing for orthopaedic implants and associated products would not be increased before 1 November 2020 subject to any prior termination of the agreement.              

Feedback sought

PHARMAC welcomes feedback on this proposal. To provide feedback, please submit it in writing by 4pm Wednesday 27 September 2017 to:

Maree Hodgson
Senior Device Category Manager
PHARMAC
PO Box 10254
Wellington 6143

Email:   maree.hodgson@pharmac.govt.nz

All feedback received before the closing date will be considered by PHARMAC’s Board (or its delegate) prior to making a decision on this proposal.

Feedback we receive is subject to the Official Information Act 1982 (OIA) and we will consider any request to have information withheld in accordance with our obligations under the OIA. Anyone providing feedback, whether on their own account or on behalf of an organisation, and whether in a personal or professional capacity, should be aware that the content of their feedback and their identity may need to be disclosed in response to an OIA request.

We are not able to treat any part of your feedback as confidential unless you specifically request that we do, and then only to the extent permissible under the OIA and other relevant laws and requirements. If you would like us to withhold any commercially sensitive, confidential proprietary, or personal information included in your submission, please clearly state this in your submission and identify the relevant sections of your submission that you would like it withheld. PHARMAC will give due consideration to any such request. 

Details of the proposal

PHARMAC has entered into a provisional Agreement with Lima for a range of orthopaedic implants and associated products. The exact product range and pricing in this proposal has not been included in this consultation for brevity, however, we are making it available to Procurement Departments at DHBs. Brand ranges in the agreement include Lima Corporate SpA and Meret Medical GMBH manufacturer’s ranges across hip, knee and shoulder joint implants and a range of wires and screws including but not limited to the following brands:

  • Accent
  • Delta ranges
  • LimaVit
  • SPH
  • BioBall
  • Biolox
  • C2
  • Collo MIS
  • Duel mobility
  • Fit
  • Friendly
  • H-Max ranges
  • Master SL
  • Minima ranges
  • Modulus
  • Physica
  • PLS
  • Sam Fit
  • SMA

If the Agreement is approved by PHARMAC’s Board or its delegate, Lima’s range of orthopaedic implants and associated products would be listed in Part III of Section H of the Pharmaceutical Schedule from 1 November 2017, which contains products with national agreements that DHBs are able to purchase under.

The Agreement includes terms for education services to be provided by Lima to DHB personnel on the appropriate use of its orthopaedic implants and associated products, which is to be provided in formats and at times as agreed with individual DHBs.

Background

In April 2016 PHARMAC published a request for proposal (“RFP”) for non-exclusive national agreements for the supply of orthopaedic implants and associated products. Following closure of this RFP we have been working with a number of suppliers in order to seek provisional agreements with them. This is one of the provisional agreements arising from that process, and we intend to consult on proposed agreements with other suppliers over the next few months.